Investing.com - Gold prices edged out a small gain in early Aisan trade on Wednesday in a slight follow through from gains in the U.S. overnight.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at $1,326.90 a troy ounce, up 0.02%, after hitting an overnight session low of $1,324.70 and off a high of $1,333.10.
Setting the tone overnight, the Institute for Supply Management reported earlier that its purchasing managers'' index fell to 55.3 in June from 55.4 in May.
Analysts had expected the manufacturing PMI to increase to 55.8 in June, and while any reading over 50 marks expansion, this and other hit-and-miss indicators out of the U.S. have many convinced the Fed will keep interest rates low into 2015, long after it concludes its stimulus programs.
Loose monetary policies tend to weaken the dollar, thus bolstering gold''s appeal as a hedge.
Speaking Monday, San Francisco Fed President John Williams underlined this view, saying the bank will probably need to hold interest rates near zero for at least another year to ensure recovery remains on track.
Separately, the Commerce Department said construction spending rose 0.1% in May, below the expected 0.5% increase.
Silver for September delivery was udown 0.18% at $21.078 a troy ounce. Copper futures for September delivery were down 0.02% at $3.203 a pound.
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